With the dust yet to settle on the 2017 General Election the banks are already running scared at the prospect of Jeremy Corbyn becoming the next Prime Minister.
Following comments from a Goldman Sachs banker that Britain would be like “Cuba without the sunshine” under the Labour leader a strategist at Morgan Stanley has claimed Corbyn is a “bigger risk than Brexit” to Britain’s slowing economy.
The comments were made in the bank’s annual outlook for the European stock markets, which consists of some 73 pages in total, but it’s two small sentences that grabbed all the headlines.
The bank said a Labour win could spark the “most significant political shift in the UK since the end of the 1970s”. Not that Corbyn is running scared.
Rather than rebuke the comments the Labour leader has come out to confirm that their fears may well become a reality if Labour got into power.
He criticised Morgan Stanley for its role in the 2008 financial crisis, labelling it as one of the “speculators and gamblers who crashed our economy”
He said: “Their greed plunged the world into crisis and we’re still paying the price.
“Nurses, teachers, shopworkers, builders, just about everyone is finding it harder to get by, while Morgan Stanley’s CEO paid himself £21.5 million last year and UK banks paid out £15 billion in bonuses.
“Labour is a growing movement with well over half a million members.
“So when they say we’re a threat, they’re right.
“We’re a threat to a damaging and failed system that’s rigged for the few.”
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